Long-term fixed rate products appeal to Brits
Britons have a "considerable appetite" for long-term fixed rate
mortgages of the kind recently endorsed by the Chancellor of the
Exchequer, it has been revealed.
According to figures from the Council of Mortgage Lenders, 42 per
cent of borrowers would opt for a fixed-rate deal if they were
taking out a mortgage deal, with 43 per cent of this number opting
for a medium to long-term package.
Of these, some 39 per cent said the overwhelming factor in choosing
a long-term fixed rate deal was the stability they afford.
However, according to Rob Pannel, head of research at the CML,
further action is needed from the government if take up of
long-term products is to increase any time soon.
He said: "In the absence of a major policy intervention from the
government, the take up of long-term fixed rates looks set to
remain relatively small for the foreseeable future and the most we
are likely to see is some movement from short-term to medium-term